Posted Dec 10, 2015 by Martin Armstrong
Hardly a day to write about with Asian equities not really showing any indications of a direction, let alone a story, for the day. All core indices closed +/- 0.5%; even to fabricate a rumour would constitute just that — a fabrication! The European session was pretty much the same without much away from core DAX, and CAC closed around 1% lower whilst FTSE closed marginally unchanged. In the U.S., stocks drifted lower but hardly a day to report of meaningful declines!
The U.S. bond market continues to recover with bids building across the curve. 10s closed the day 2bp tighter at 2.20% with the German 10yr closing around the 0.60bp range. Closing the spread this evening at +160bp is the tightest we have seen in a few weeks.
The U.S. dollar lost a lot of recent gains against commodities and their currencies with the euro, GBP and the DXY all gaining. However, it was ground already claimed, so not really fresh news that held any advance in check. Closing between 1-1.5% against the euro, GBP and even DXY is not a reason to be that jubilant, as we were told by dealers.